DEFLATION POLICY IN LIGHT OF COMPETITION FOR DIGITAL CURRENCIES AND FIAT CURRENCY

Abstract

In early age barter system was used to exchanges goods and services to meet the necessities of the society. Later
on the metallic currency has such as gold and metallic coins have replaced as currency the exchanges medium of
goods and services. At recent the introduction of digital currency is emerging and increasing all over the world
very rapidly. Beside the normal currency being controlled by the government, the era of digital currency has
been started. This system has started peer-to-peer transaction that has decentralized the traditional system and
has universally been considered a medium of exchange. However, there is an ample of research opportunity in
the digital and fiat currency deflation in Iraq. Very little research has been carried out in this regard. Hence, this
paper focused the devaluation of digital currency in Iraq. This paper would help to understand the current
situation of Iraq regarding the importance, benefits, success and failure of digital currencies. Lastly, this study
will open avenues for the researchers to explore this study area in broader concept.